FY 2012 Capital Budget and FY 2012-2023 Capital Program - Septa

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FUNDING OUTLOOK AND SHORTFALL
• Asset Improvement Program (Section 1514) – State Capital Bond funds are used to match federal grants and support State
funded initiatives, such as the Vehicle Overhaul Program and the Infrastructure Safety Renewal Program. This program also
includes a provision to distribute additional capital funds, if available, to transit agencies based on their demonstrated need.
Priorities are: 1) Support of existing debt service or asset leases that are currently supported with state revenue sources; 2)
Use as match for federally funded projects; 3) Essential emergency asset improvement projects; 4) Standard replacement of
existing assets that have exceeded their useful life; 5) Asset improvement projects to extend the useful life of the affected
assets; and 6) Acquisition of new assets and other acceptable purposes, other than projects that would be funded under the
New Initiatives Program. Transit agencies are required annually to submit a four and twelve year capital plan that coincides
with their regional Transportation Improvement Program.
• New Initiatives Program (Section 1515) – This is a new program that provides the framework to advance new, or to expand
existing fixed guideway projects. Funding for this program is at the discretion of PennDOT. Priority in the use of funds is given
first to satisfy the local matching portion of federally approved New Starts projects. Projects that do not receive federal New
Starts funding may be funded under this program provided there is sufficient evidence that the transit operator can meet all of
the following requirements: 1) Investments in existing service areas have been optimized; 2) An analysis reveals a reasonable
return on investment; 3) Public benefit of the project has been identified; 4) A local dedicated funding commitment exists to pay
any required local match for the project and ongoing costs; 5) Local technical ability and capacity exists to manage, construct
and operate the project; and 6) The project is supported by the adoption of an integrated land use plan by local municipalities.
• Programs of Statewide Significance (Section 1516) – This section includes programs such as Persons With Disabilities,
Welfare to Work, Job Access and Reverse Commute, intercity passenger rail and bus services, community transportation
capital and service stabilization, as well as technical assistance, demonstration and research projects and other programs as
determined by PennDOT.
• Capital Improvement Program (Section 1517) – A portion of the Public Transportation Trust Fund is distributed on a formula
based on the number of passengers carried so that transit agencies will have a steady reliable stream of capital funding.
As part of an agreement between the Commonwealth of Pennsylvania and the transit community during the enactment of Act 3
of 1997, a total of $25 million a year in federal highway funding will continue to be flexed to transit agencies for capital
improvement projects.
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